There's several ways to do this. But the simplest way is just to include your scrapped attempts in the Cost of Goods Sold in the Business Inventory section.
Is this viable for you? I ask, because if you pay your supplier for each individual piece that you scrap, you may want to do this differently to keep your books straight. Whereas if you are cutting the peices yourself from say, a single sheet that provides you with multiple pieces when cut, then including it in the cost of goods sold really isn't a problem and probably simpler.
